Proposition 13's legacy to California cities has been a destructive one. One ill effect of the tax-revenue shortfall has been the construction of many unnecessary office buildings, hotels, and shopping malls - all intended by local governments as a means to recapture lost revenues. The result has been overbuilding, a weakening of the real estate market, and regional competition where there might otherwise have been cooperation.
All this is well known. But if, by some imaginary power, we had the p...